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Missouri Cash Rent Rates Drop In Latest USDA Report

By Joe Koenen
 
Cash rent rates dropped overall in many Missouri counties, according to a Sept. 8 report from U.S. Department of Agriculture.
 
Rates for cropland and pastureland dropped overall from the previous year, said University of Missouri Extension agriculture business specialist Joe Koenen. Koenen leads sessions on Missouri farm leases to educate landowners and tenants on how to develop fair leases for farmland, recreational land, livestock and equipment.
 
“As I would expect, the northwest portion of the state had the highest average drop in crop rent, averaging $4 per acre,” Koenen said. DeKalb County’s average dropped $27 per acre while Worth County dropped $23. Koenen noted, however, that some counties in northwestern Missouri showed increases.
 
The statewide average for cropland in Missouri dropped $1 per acre—less than 1 percent, Koenen said. It went down 2.4 percent in northwestern Missouri and 1.5 percent in northeastern Missouri.
 
Pastureland rates continue to hold steady since less land is available for rent, Koenen said. The statewide average was $31. Warren County had the lowest rate at $13, and Knox County topped the list at $51.
 
Atchison County in northwestern Missouri topped the state’s cropland rent rate at $188 per acre. Crawford County reported the lowest rate—$16 per acre.
Koenen said the new report follows his 2016 predictions that lower commodity prices would drive rental rates downward. He expects pressure on cropland rental rates will continue in the next year, with pasture rates holding steady.
 
View data on Missouri counties at goo.gl/k8yfu7.
 
MU Extension surveys rental rates every three years. In 2015, the survey showed dryland rent at a statewide average of $145.50 per acre. Pastureland rates ranged from $10 to $100 per acre, with an average of $38.41. The survey is available at agebb.missouri.edu/mgt/cashrent2015.pdf.
 
More information:
 
-“Tips for negotiating new farmland leases” (news article), extension.missouri.edu/n/2964.
 
-“Farm Lease Agreement” (MU Extension publication G426), extension.missouri.edu/p/G426.
 
 
 

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